, onOctober 18, 2010 at 6:26 pmSaid:The issue is REPURCHASES. And, I am telling you that this may involve insurance fraud againstthe GSEs. NOT defending the GSEs – as my friends here may counter – but there is somethingmuch more than has NOT been exposed.

See below for discussion on GSE

And, I might add – that judges across the country have no idea about securitization – “MortgageSchedule” – “what is that??” This is is what we are exposed to in courts across the country. And,then, just try to get past the Original Mortgage Schedule – and what happened after that.. The so-called securities are tied to derivative rights – the banks are protecting those transferred collectionrights – and the courts do not know have a clue. WHY? Because….the courts say – “You owe themoney”. BUT, you owe the money to WHO?? and what money do you owe on a fraudulentcontract based on a fraudulent appraisal??? And, who denied you a modification? Or, even theopportunity to request a valid modification.?You cannot come out – saying – I owe nothing – it will not work. You have to call the bluff – andtake it from there.SEE – http://www.dailyfinance.com/story/investing/how-much-will-foreclosures-weigh-down-big- banks/19678719/Quote – When they sell the loans, the banks make representations and warrants to the investors that the borrowers meet certain loan criteria, such as the level of their FICO credit scores or their income.If it turns out later that this information is wrong, the investor can force the bank to repurchase themortgage from the trust that holds them” (ad-lib – holds what?? – but assume, for argument – thatthey are correct)Continue – “The first is what the banks have termed “putbacks,” but are really repurchases of mortgages. Most banks don’t keep mortgages on their books any more. Instead, they pool home loans together andsell slices of those bundled securities to investors, who assume the credit and interest rate risk onthe underlying loans.”From me – just as the banks “pooled” sale of receivables (which only qualify as securities) – in thesame way – banks SELL “pooled” derivatives of collection rights. If the banks do not honor these

collection rights – they are in for bigger legal actions than anyone here can assert. This woulddevastate stock price. All is structured to cover up.We are doomed unless some aggressive court measures are taken. We are no match for WallStreet/political power. And, we will not win by claiming no money is owed – we will win byclaiming it is NOT owed to the party demanding foreclosure. Must show theaffidavits/assignments/note/endorsement/allonge/chain of title – is FALSE. And, that you have been denied the right to confront your true creditor.They know this – and are doing everything to stop you in court – and the judges know nothingabout anything except – “You owe the money.”Again, WHAT MONEY AND TO WHO?.End of ANONYMOUS POST----------------------------------------------------------------------GSE=government sponsored enterprise

GSE Issuers and Their Financing Needs

Government-sponsored enterprises (GSEs) are financing entities created by Congress to fund loansto certain groups of borrowers such as homeowners, farmers and students. Through the creation of GSEs, the government has sought to address various public policy concerns regarding the ability of members of these groups to borrow sufficient funds at affordable rates.GSEs are also sometimes referred to as federal agencies or federally sponsored agencies. Thereader should note, however, that there are organizational differences among the GSEs although allare established with a public purpose: Federal National Mortgage Association (Fannie Mae) andFederal Home Loan Mortgage Corporation (Freddie Mac) are privately owned corporations, whilethe Federal Home Loan Banks and the Federal Farm Credit Banks are systems comprising regional banks.All GSE debt is not guaranteed by the federal government, whereas government agencies such asGovernment National Mortgage Association (Ginnie Mae) are divisions of the government whosesecurities are backed by the full faith and credit of the United States.

To conduct their lending business, GSEs have significant funding requirements. While many arestockholder-owned companies that can raise equity capital, most GSEs rely primarily on debtfinancing to fund their day-to-day operations. Among the most active issuers of debt securities are:

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Federal Home Loan Banks

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Freddie Mac

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Fannie Mae

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Federal Farm Credit Banks and

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Tennessee Valley Authority (TVA).Supranational and international institutions, such as the World Bank, also issue debt securities. Seecomplete descriptionsof each GSE.Buyers of GSE-issued debt securities include domestic and international banks, pension funds,mutual funds, hedge funds, insurance companies, foundations, other corporations, state and localgovernments, foreign central banks, institutional investors and individual investors.

The Credit Quality of GSEs

In general, debt securities issued by GSEs are considered to be of high credit quality. The senior debt of the GSEs is rated AAA/Aaa, while the subordinated debt of Fannie Mae and Freddie Macis currently rated AA-/Aa-. Some GSEs have explicit, though limited, lines of credit from the U.S.Treasury. As a group, GSEs benefit from a perceived tie to the federal government as institutionsestablished under federal legislation. In September 2008, the Federal Housing Finance Agency became the conservator of the housing GSEs. In connection with the conservatorship, Treasury hasnow committed to provide necessary funding to correct any deficiencies in their net worth.However, debt securities issued by GSEs are solely the obligation of their issuer and, unlessexplicitly stated, do not carry any guarantee by the federal government. They are considered tocarry greater credit risk than securities issued by the U.S. Treasury and certain governmentagencies (e.g., Ginnie Mae) whose securities have the full-faith-and-credit guarantee of the U.S.government. For this reason, GSE debt obligations often carry a yield premium over Treasurysecurities with comparable maturities. The premium varies with market volatility, and thestructure, maturity, and general supply and demand for the particular security.

The Growing Use of Regular Issuance Programs & Auctions

The GSEs utilize a variety of issuance formats for their securities. Most long-term debt is issued in public monthly security sales through designated dealer groups using both syndicate and auction